Warning: Many Face Nearly Impossible Financing 30 Years Of Retirement With 40 Years Of Work

Two economists from the National Bureau of Research say that many workers are attempting an impossible challenge of attempting to finance 30 years of retirement with 40 years of work. Robert Clark and John Shoven reported their findings to a Brookings Institute symposium on the elderly in the workplace.

In their report, the economists stated that the proportion of the labor force age 55 and over rose from 11.9% in 1994 to 21.7% in 2018, and they expect it to increase to almost 25% by 2024. Also, the share of persons 55 and older working rose from 30.1% in 1994 to 40.0% in 2014. Roughly 16% of seniors over age 65 are self-employed—over twice the rate of prime-age workers.

People 60 and above in the labor market has increased substantially, though participation in their 70s still remains low. “The single best way to ensure that today’s workers can enjoy a secure retirement is to persuade them to stay in the labor force longer and convince employers to hire and retain them,” Center For Retirement Research at Boston College Director Alicia Munnell said at the symposium.

See Ted Knutson, Warning: Many Face Nearly Impossible Financing 30 Years Of Retirement With 40 Years Of Work, Forbes, January 24, 2019.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.